Question

Seamus would like to acquire all the assets of a target company, achieve favorable tax results and reduce the likelihood that the parties will need to obtain third-party consents prior to the completion of the transaction. Seamus should structure the purchase as a:_______.

Answer 1

Answer: Seamus should structure the purchase as a stock acquisition.

Explanation:

Stock acquisition means buying the shares of chosen company. Here Seamus is trying to buy the shares of target company. Through stock acquisition the entire shares of another owner is acquired and which also includes his liabilities. Even the unwanted liabilities can be transferred  back to the seller.

This stock acquisition option provides favorable tax results for Seamus. The capital gains need not be paid by Seamus . This option of stock purchase does not require third party consent for completing the transaction.